Shares of NMDC, India’s largest iron ore producer, are prone to be in concentrate on Tuesday, September 2, following the discharge of its August manufacturing and gross sales figures. Iron ore gross sales rose to three.39 million tonnes (MT), in contrast with 3.14 MT in the identical month final yr.
Cumulatively, gross sales for April–August 2025 stood at 18.37 MT, up from 16.27 MT a yr earlier. On the manufacturing facet, output in August was 3.37 MT, larger than 3.07 MT in August 2024. Cumulative manufacturing for April–August 2025 reached 18.45 MT, in contrast with 14.43 MT within the corresponding interval final yr, in line with the corporate’s regulatory submitting.
Analysts count on NMDC’s manufacturing to achieve 50 MT by FY26
In 1QFY26, quantity progress was sluggish because of the early onset of the monsoon. Nevertheless, regular value hikes by the corporate helped offset the influence of weaker volumes, leading to wholesome working revenue.
Iron ore manufacturing in the course of the quarter stood at 12 MT (+31% YoY, -10% QoQ), whereas gross sales got here in at 11.5 MT (+14% YoY, -9% QoQ). The typical promoting value (ASP) for the quarter rose to ₹5,851 per tonne (+9% YoY, +6% QoQ) as iron ore costs remained elevated.
Wanting forward, home brokerage Motilal Oswal expects volumes to rise steadily to 50 MT in FY26 and 55 MT in FY27, supported by a rise in EC limits. The brokerage has largely maintained its estimates for FY26–27, pushed by secure realizations and wholesome, volume-led working progress.
NMDC has lined up capex for evacuation and capacity-enhancement tasks, aimed toward bettering its product combine and elevating manufacturing capability to round 100 MT by FY29–30.
The corporate had web money of ₹63 billion as of FY25 and is anticipated to generate working money stream (OCF) of ₹190 billion over the subsequent two years. In accordance with the brokerage, this may help its capex plans with out overleveraging. Motilal Oswal has a purchase score on the inventory with a goal value of ₹70 apiece.
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